When corporations have too much debt and need to restructure it, creditors often end up exchanging bonds or loans for stocks. They trade the guaranteed payout of a fixed-income investment for an equity position whose return depends on the company’s future results. […]
The economic recovery continues, though the pace of the recovery has slowed. Notably, our global forecast was lowered in January to a still-healthy 4.4 percent expansion this year.
Asset purchases can be an effective tool, but it is critical to minimize risks to central bank independence and price stability.
When crises hit, such as a global health pandemic, countries have a number of financial resources—both internal and external—to draw on.